Correlation Between Shenzhen Glory and China Shenhua
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By analyzing existing cross correlation between Shenzhen Glory Medical and China Shenhua Energy, you can compare the effects of market volatilities on Shenzhen Glory and China Shenhua and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shenzhen Glory with a short position of China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and China Shenhua.
Diversification Opportunities for Shenzhen Glory and China Shenhua
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and China is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy and Shenzhen Glory is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shenzhen Glory Medical are associated (or correlated) with China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and China Shenhua go up and down completely randomly.
Pair Corralation between Shenzhen Glory and China Shenhua
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 1.52 times more return on investment than China Shenhua. However, Shenzhen Glory is 1.52 times more volatile than China Shenhua Energy. It trades about 0.09 of its potential returns per unit of risk. China Shenhua Energy is currently generating about 0.0 per unit of risk. If you would invest 325.00 in Shenzhen Glory Medical on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Shenzhen Glory Medical or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. China Shenhua Energy
Performance |
| Timeline |
| Shenzhen Glory Medical |
| China Shenhua Energy |
Shenzhen Glory and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and China Shenhua
The main advantage of trading using opposite Shenzhen Glory and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, China Shenhua can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Shenhua will offset losses from the drop in China Shenhua's long position.| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
| China Shenhua vs. Zhejiang Kingland Pipeline | China Shenhua vs. Zhejiang Dahua Technology | China Shenhua vs. Changchun Faway Automobile | China Shenhua vs. Shanghai Lingyun Industries |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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